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Driving Innovation through Online Communities

Author

Sarah Rose

Published

18 Nov 2013

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This morning at BEI 2013 in Santa Clara, California, Thomas
Finkle, Ph.D., CEO of Passenger, discussed how online communities are increasingly
driving innovation. Today, communities
in the online space provide both collaboration and insights. In the past brands
were in control. For decades, brands basked in the glory of control, control
over consumers' perceptions, impressions and ultimately decisions and ensuing experience.

But, all of that changed with the onset of the social media
evolution. These days, the environment has changed drastically and
organizations have learned that they must have an active social media presence
to be successful. In fact, 85 percent of users believe a company should not
only be present, but also interact with its consumers via social media.

So this new concept of the 'Wiki Brand' has emerged. A 'Wiki
Brand' taps into the true power of social networks, brand connections, and
customer participation to build real value. 'Now, brands recognize that there
are communities of customers out there who are relied upon to come up with
ideas and carry ideas out through brand advocacy,' said Finkle.

Not only do you have to measure the community of your
customers, but you have to impact them as well by making a connection. Brands
either live or die because of this dynamic. Therefore, the need to innovate is
now more important than ever before.
According to Finkle, you must innovate your brand or you will perish as
a company.

'Failure to innovate and stay ahead of your customer has
negatively impacted the value and future of brands,' he explained.

At its root, successful innovation is all about customer collaboration
and that is what takes place in communities. There is growing evidence that you
have to approach the collaboration process more thoughtfully. Another key
aspect of successful innovation is understanding customer needs. In fact, Ted
Levitt of Harvard University once said, 'People don't want a quarter-inch drill
' they want a quarter-inch hole.'

The bottom line, according to Finkle, is you shouldn't ask yourself
'What do we have to make'? Instead, ask 'What does a customer need done right
now'? Or even better, 'What will the customer want next'?